M&A activity between US and UK up over 80% by value in one year

• Value of US/UK M&A deal corridor increases from US $20,104 million in H1 2016, to $36,605 million in H1 2017
• Renewed activity from UK acquirers in the US, while US buyers cool on UK acquisitions

The value of M&A deals between the US and the UK increased from US $20,104 million in the first half of 2016, to $36,605 million this year, according to the latest US/UK M&A Deal Monitor from Deloitte. 

The value of acquisitions from the UK into the US was $28,891 million, nearly seven times the $4,194 million reached in the first half of 2016. However, the value of US acquisitions into the UK has halved from $15,910 million to $7,714 million in H1 of this year.

Cahal Dowds, partner and vice-chairman of Deloitte UK, comments: “M&A between the US and the UK is one of the largest deal corridors by value and remains robust despite momentum from continuing uncertainties.

“This year has seen a divergence between the two countries. While UK M&A activity into the US is up, investment from US dealmakers here has fallen. Uncertainties over regulatory change, the tax environment and the terms of the UK’s exit from the European Union are factors likely to have impacted on US acquisitions in the UK.”

The volume of deals in both directions remained steady, dipping slightly from 376 deals in the first half of 2016, to 371 this year. By sector, the number of deals in technology, media and telecom (TMT) is the largest. Since Deloitte’s Deal Monitor launched in Q3 of 2015, there have been 246 TMT deals from US acquirers in the UK, with another 152 from UK buyers in the US.

Cahal Dowds continues: “The rate of growth in technology will continue to drive M&A across the US/UK deal corridor, as well as lead many businesses to be reclassified as TMT ones.

“Overall, there are currently more buyers for fewer businesses. High valuations are being driven by this fierce competition for assets, combined with a belief that M&A is a primary strategy for growth, and no longer second best to organic growth.”

End

Notes to editors

Methodology: Data in the Deloitte US/UK M&A Deal Monitor are based on deal volumes and values in Thomson One Banker and Deloitte analysis. Deal value calculations are based on M&A deals for which value is disclosed – deal values are not disclosed for a significant proportion of M&A deals.

All value and volume calculations are based on announced deals which may not be completed; value calculations are based on deals for which value is disclosed, while volume calculations are based on all announced deals whether or not value is disclosed.

The Deal Monitor includes volume and value data for the most recent eight quarters; in this edition data run from Q3 2015 to Q2 2017 inclusive. These findings are taken from the third edition of the “Deloitte US/UK M&A Deal Monitor” report, which is available from Deloitte.

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